Question

Four individuals pool money together to start a new business and agree to split the profits equally. N invests $6,000, X invests $2,000, Y invests $8,000 and Z invests $4,000. If the profits for the first month were $100,000, Y receives __?__less than if the profits were divided in proportion to how much they invested.

Answer 1

Answer:

15,000$

Step-by-step explanation:

According to the information given, profits are divided equally into 4 parts

Since the total profit for the first month is 100,000$ each party will receive a sum of 25,000$. This means that Y also receives the same amount

Now if the profits were divided in proportion to the investments made we first find the proportion on investment made by Y.

The total investment made is 6000$ + 2000$ + 8000$ + 4000$ = 20,000$. Out of this, the amount invested by Y is 8000$

finding the proportional profit of Y

$\frac{8000}{20000} (100000)$

=40,000$

So Y receives 40,000 - 25,000 = 15,000 less